How to Recover Debt in Madrid – A Foreigner’s Guide

🏙️ Doing Business or Renting in Madrid? Recovering Unpaid Debts Is Possible — Even from Abroad

Whether you’re a landlord, freelancer, supplier, or foreign investor, unpaid debts in Madrid can be resolved legally — and often without going to court.

In this guide, we explain how non-residents and expats can recover money owed to them using Spain’s legal tools — from formal demands to court enforcement.


🧾 Common Types of Debt Cases in Madrid

Foreign individuals and companies often pursue:

✅ Unpaid rent (residential or commercial)
✅ Unpaid invoices or services
✅ Loans not repaid
✅ Non-return of deposits
✅ Shared property expenses
✅ Construction contract disputes

If the debtor is located in Madrid, your case must be handled under Spanish jurisdiction.


⚖️ Legal Options to Recover Debt in Madrid

1. 📩 Formal Demand via Burofax

A Burofax is a certified legal notice demanding payment:

  • Delivered by the Spanish postal service

  • Used as evidence in court

  • Often results in voluntary payment

💡 Can be sent by your lawyer from Madrid, even if you live abroad.


2. 🧾 Monitorio Procedure (Fast Court Process)

For uncontested debts, Spain offers a quick court route:

  • No hearing required

  • Only need a contract, invoice, or proof of debt

  • Filed in Madrid’s Civil Courts (Juzgados de Primera Instancia)

  • Court orders debtor to pay within 20 working days

➡️ If no objection is filed, judgment becomes enforceable.


3. 👨‍⚖️ Full Civil Lawsuit (Juicio Ordinario)

If the debt is contested or exceeds €6,000, you can file a full lawsuit:

  • Handled in Madrid courts

  • Requires full case file and representation

  • Ends with enforceable judgment and potential cost recovery

✅ Your Spanish lawyer and court rep (procurador) can handle everything for you.


🔁 Can You Recover Debt Without Living in Spain?

✅ Yes. Foreign individuals and companies can recover debts remotely with legal representation.

Your lawyer in Madrid can act for you via Power of Attorney, and:

  • Draft demand letters

  • File court actions

  • Negotiate settlements

  • Enforce judgments (e.g. freeze bank accounts, seize property)


📑 Documents Needed to Claim Debt

  • ID/passport + NIE (if available)

  • Contract, invoice, or loan agreement

  • Proof of delivery or service (email, receipt, etc.)

  • Bank records or messages confirming non-payment

  • Address or contact details of the debtor (Madrid-based)


⏳ How Long Does Debt Recovery Take?

Method Timeline
Burofax demand 7–14 days
Monitorio process 1–3 months
Full lawsuit 6–12+ months
Judgment enforcement 1–3 months (post-ruling)

✅ Urgent cases (e.g. large unpaid rent) can be fast-tracked in some Madrid courts.


💶 Legal Costs in Debt Recovery

Expense Typical Range
Lawyer fees (basic case) €800–€2,500
Procurador (if required) €300–€600
Court filing fees Often waived
Enforcement costs Varies

✅ In many successful cases, costs can be charged to the debtor.


🛡️ How Our Madrid Lawyers Help You Recover Debt

We assist foreign clients with:
✅ Legal demand letters in Spanish
✅ Full court filing & representation
✅ Pre-litigation negotiation
✅ Monitorio or standard lawsuits
✅ Enforcing judgments (bank seizures, property liens)

All without you needing to be in Spain.


📞 Owed Money in Madrid? Act Now.

We help expats, landlords, and foreign businesses recover debts in Madrid with fast, legal action — even if you’re not in Spain.

👉 Contact our debt recovery lawyers in Madrid today for a consultation.

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